A market maker in the crypto space wintermutehas repaid hundreds of millions of dollars to its borrowers. This situation leverages cryptocurrency It may be a sign that you are starting to withdraw from the market.
Cryptocurrency Company Wintermute Announces It Made Hundreds of Million Dollars In The Last Few Weeks
Marina Gurevich, the firm’s chief operating officer, said in an interview with the Wall Street Journal that the company has “made hundreds of millions of dollars in payments to various lenders over the past few weeks.”
The interview cited Voyager Digital, which recently filed for bankruptcy after customers stopped trading, depositing and withdrawing. Gurevich added that Voyager reclaimed most of the credits it had given to Wintermute. Voyager had lent $27.3 million to Wintermute at a rate of 4% to 13.5%, according to the WSJ.
Voyager was known for delivering high returns on deposits. In the background, the company was lending these deposits to major trading firms, including market makers like Wintermute and Jump Trading. Since the collapse of hedge fund Three Arrows Capital, lenders have become more cautious, increasing the cost of borrowing and recalling their loans.
Wintermute CEO Evgency Gaevoy commented on this development in a recent episode of The Scoop.
“Everyone assumed these guys made billions over the years… but now it seems that we were all horribly wrong,” Gaevoy said.
The CEO also added:
“All cryptocurrency lenders have recalled all open loans they made to Wintermute. Our balance sheet has actually shrunk by more than half.”
*Not investment advice.